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The Rundown: As e-commerce grows, the eCommFronts address data and communication issues

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The Rundown: As e-commerce grows, the eCommFronts address data and communication issues

Does the red-hot world of e-commerce — estimated to be in the neighborhood of $100 billion according to Boston Consulting Group — even need its own “upfront”? Horizon Media’s topical Night Market unit certainly thinks so.

Night Market, which specializes in guiding clients through e-commerce and retail media offerings and inventory, hosted its third annual eCommFronts beginning Tuesday through today. The virtual event examines the changing and growing world of e-commerce and shoppable media, focusing more intensely on the collapsing funnel (the coming together of brand gain with performance results) and the melding of data sets, said Randy Browning, president of Night Market. The event had 539 registered users.

The companies presenting cut across the growing swath of retailers that have opened up new revenue opportunities by selling ad inventory on their own digital presences and weaponizing their data to help other media hungry for insights on consumer behavior.

“The opportunity is that you have an ability to create a collapsed funnel in a purchase journey that is starting online,’ said Browning.

Here are some takeaways from the event:

Among the companies presenting are retailers Walmart and Kroger, both of which have committed deeply to building out an e-commerce and retail media revenue stream, but are now also generating data that has its own revenue value.

“People assume retail media is just sponsored product listings in e-commerce,” said Jill Smith, director of agency partnerships with Kroger Precision Marketing, which now operates within a data science division called 84.51°. “But we’ve entered a new phase of retail media. Now brands are using Kroger Precision Marketing’s first-party sales data to target and optimize programmatic ad campaigns on the open web.”

That said, retail media is still fighting for a greater share of media buyers’ attention, even if it’s caught on pretty well with marketers. A recent Digiday+ Research survey of 59 agency and marketer executives found that the bigger retail players haven’t yet seen a significant uptick in media investment. That could have something to do with why the eCommFronts are taking place.

New channels

Of course, ad-tech and platform players are also part of the eCommFronts, including Meta, GoPuff, Instacart, Criteo, Roku and The Trade Desk. Now that the retailers have established their media channels, next steps include setting some of the inventory for sale programmatically, as well as other offline opportunities. “Think about it from a branding perspective where we move from awareness through to consideration,” said Browning, “And all of this with a closed-loop approach to attribution without the need of cookies. We are very bullish on where this opportunity goes.”

Streaming, a seemingly omnipresent element in any media plan, is winding its way into the e-commerce equation as well. “Streaming TV is the next frontier of commerce,” said Kroger’s Smith. “Roku CPG advertisers can now use our sales data to identify the households they want to reach — like people who are lapsed buyers of a particular salsa or toothpaste brand — and then measure the incremental impact of that advertising.”

Uncertain near-term future?

The road ahead isn’t just paved with gold, acknowledged Browning, who sees the still-unresolved disconnect between shopper marketing budgets and media planning as an obstacle to seamless progress. He added that better alignment of data between client and retailer is another area that needs to see improvement — an area where the use of clean room technology might help.

Still, the revenue potential remains higher than most other media, even at this time of darkening economic clouds. “Retail Media is foundationally built on the premise that the best opportunity to speak to a customer is at the point of purchase, or when they are in the closest proximity to conversion — pushing a physical shopping cart or adding to a digital one,” said Albert Thompson, managing director of digital innovation at Walton Isaacson. “Given its high correlation for directly impacting sales, it is the revenue return solution in marketing. What gives it even more power is that it possesses supply-chain acumen, meaning it’s oriented around the volume of product available in real-time so spending is adjusted in direct correlation with supply and demand.”

One major commerce expert added that agency budgets in tight economic times tend to go down, but rarely are e-commerce budgets affected since they are directly tied to sales, which companies need when market conditions worsen.

https://digiday.com/?p=449058

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Confessions of an in-house creative strategist on feeling unfulfilled, difficulty in returning to agencies as the ‘pay is less’

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Confessions of an in-house creative strategist on feeling unfulfilled, difficulty in returning to agencies as the ‘pay is less’

The war for talent between agencies and brands’ in-house agencies has cooled. Even so, for adland talent who’ve made the move in-house, some say they are looking to go back to agencies after feeling creatively stifled. It’s not the easiest strategy to execute.

In the latest edition of our Confessions series, in which we trade anonymity for candor, we hear from an in-house creative strategist about their experience, why they want to go agency-side now and how pay is keeping them from doing so.

This conversation has been lightly edited and condensed for clarity.

What’s the in-house experience like?

I’ve been in-house for about a year. It’s very one-sided. The difference between agency and in-house is that with agencies, there [are] a lot of opinions and ideas [outside of the brand message] that go into creative. With in-house, you have the brand’s message and all creative is reflective of the brand’s message. With in-house, regardless of trends in the market, it’s a lot of ‘we’re going to stick to this one way of doing things’ mentality. It’s a lot of opinions about what the creative should be based on what it has been before. It makes it hard to introduce something fresh. It makes it hard to hire or be a new hire. If you’re not actually going to adhere to advice from new hires, what’s the point in getting new people? Are you just bringing people on board for a second opinion? That’s what it feels like.

Sounds like you don’t have the creative control you desire.

It feels like more of a second opinion role than to get something to manage or control. [Where I am now] it feels like we’re leaning more into what [our strategy] used to be than thinking about what we could be. That’s a big issue with in-house. With agencies, like I said, there’s a lot more trial and error. With in-house, a lot more of this is what we’re doing, these are the funds we have and this is what has worked in the past. In reality, a lot of what worked in the past, when you put it back into the market, it’s not going to work anymore. 

Why do you think it’s more challenging to get to a new creative strategy in-house?

With agencies, you have multiple perspectives. You’re working on multiple brands. You can see something working for another brand and talk to your client about it. You can pivot. You have the background and perspective to [pitch that pivot]. When you’re in-house, you only have the knowledge of your brand and what’s working for you. 

Are you looking to go back to agencies? 

Personally, I am looking to go from in-house to agency but I get paid a lot more being in-house than what I’ve been offered at agencies. I’ve been in interviews with agencies where they’re telling me that I’ll be learning [programs I already know how to use] so that’s why the pay is less than what it should be. There are agencies I’ve interviewed with who ask me to move to New York for less than what I make now and make that work. [With inflation,] there’s no reason why salaries aren’t also increasing. 

So you’d like to make the jump creatively but it’s hard when the compensation isn’t up to what in-house offers? 

It’s hard. I’ve been lowballed, too. They’ll post a salary for a position, go through the interviews and then offer less than what’s listed on the salary description. What was the point of putting the salary range there? I feel like people are putting salary ranges on job descriptions just to attract people with the experience that they are looking for but by the time they make the offer, it’s not what they said it would be. It’s offensive.

https://digiday.com/?p=452660

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